As you start your new career in real estate, you may be wondering what approach should I use in choosing a real estate career? As a student realtor or a new realtor, you probably have already come to the conclusion that their are so many different markets you can focus on within the real estate industry. For instance, you can focus on helping sellers or buyers that are in the residential market, or you could focus on the investor market. Additionally, you might be thinking about whether to focus on new construction homes or the resale market. At the end of the day, no matter what you decide to choose as your focus for your real estate career, you must use a personalized approach.
A personalized approach is one that focuses on your strengths and weaknesses and gives you a clear picture of what your time will be best centered on, based off of these two factors. Let's look at each situation separately and see what factors affect choosing your real estate career.
Sellers vs Buyers
In the real estate industry, focusing on sellers is an activity that is usually considered one of the best activities, as it normally requires the least amount of leg work, after you have a contract agreement with your seller. In this instance, you simply meet with the seller a few times, list the property in the MLS and have a few open houses. The saying is that if you have a seller's listing, a buyer will always come. On the other hand, you could focus on working with buyers, which takes a little more leg work, like getting your buyer qualified with a lender, searching for homes that your buyer may be interested in and spending hours, many times days, showing homes to the buyer.
Investors are a special group of people that are purchasing the homes, not to live in, but to either rehab and sell or to rent out to tenants. Investors are usually a little bit easier to work with, considering they normally understand the market and they are also usually cash buyers or have access to easy collateral based financing known as hard money. Investor specialization is something that not many real estate agents focus on when they choose their career, so this is something that is considered more in demand.
Resale vs New Home Construction
When choosing your real estate career, looking at resales vs new construction is a must. Though they are both very lucrative markets, they both have different things to offer to an agent and their clients. For example, builders, usually like to work with a team of realtors to represent their brand. This really puts the builder and the agent in a win win situation as the agent attracts new business for the builder with their own personal book of business and the builder attracts business for the agent as they sit at the model homes. New homes often offer new appliance packages and other incentives that entice buyers, as well.
On the other hand, their is the resale market, in which depending on your buyer client could be high in demand. Many buyers already know exactly what neighborhood they want to live in, as they have been admiring it for sometime. The resale market is really good when you are respresenting those types of buyers. On the flip side, if you are representing the sellers of a resale, you will need to make sure the home is prepped and looks good to sell. There is a little more work put into staging the home, landscaping for curb appeal and making any necessary repairs to move the house off the market quick.
As you look at each of these, take the time to measure your personality style and how it would match with the activities aligned. You may love staging and can't wait to get into the resale market to work with sellers. You may have worked in contracting and know so much about home rehab, you would be a great asset to investor clients. Maybe you have a relationship with a local builder and want to cash in by focusing on new home construction. So when thinking, what approach should I use when choosing a real estate career, use a personalized approach that focuses on your attributes as a person and an agent.